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Cal Water Proposes Rate Increase

Bart
/
Flickr, Creative Commons

Cal Water customers in the Chico area may soon face higher water bills. The investor-owned company, which provides drinking water to Chico and several other communities in the North State, has filed for permission with regulators to raise rates.

The rate increase is only one facet of Cal Water’s proposal. The application before the California Public Utilities Commission also seeks to merge several distinct divisions and standardize rates.

Several elected officials oppose the internal consolidation, saying it would push rates higher for most customers.

However, according to a report to be presented to the City Council on Tuesday, average customers would see their monthly bill rise by $9 if the merger goes through. They would rise $10 if the merger is forbidden.

The company also unveiled several planned system upgrades, including new control software and rebuilt pump stations. Cal Water also plans to replace nearly six of its 383 miles of water mains in the Chico area.